Believe it or not, the various state taxing authorities are often more ruthless than their federal counterpart, the IRS.
In Florida, for instance, the Department of Revenue (DOR) regularly does 3 things that should put the fear of Yahweh in taxpayers:
1. Issues tax warrants rather than tax liens – The use of the word “warrant” is calculated to frighten the taxpayer into thinking that his tax delinquency is a criminal rather than a civil one. Business taxpayers who have collected sales taxes from their customers and failed to remit those taxes to the State have special cause for concern.
2. Vigorously pursues criminal prosecution in delinquent sales tax cases – Although in theory the DOR, like the IRS, would prefer to resolve a taxpayer’s delinquency in an amicable manner without incurring the expense of criminal investigation and prosecution, it often refers cases to state prosecutors faster than a paparazzo takes snaps shots of baby Suri.
3. Uses a variety of creative methods to collect outstanding tax debts and/or punish the taxpayer – Most business taxpayers cannot operate without a state sales tax registration number. The DOR knows this and, in order to exact the maximum amount of pressure on a delinquent taxpayer, will initiate a formal proceeding to revoke a taxpayer’s registration with the state. Also, if a taxpayer has any other state issues licenses or registrations (i.e a liquor license) the IRS will attempt to revoke or terminate the license of the taxpayer.
In my 25 years of experience representing Florida taxpayers (and taxpayers of other states), I have found that state taxing authorities are usually more aggressive toward and unforgiving of delinquent taxpayers than is the IRS.
Don’t let their looks fool you. These pocket-protectored state bureacrats you used to earflick in high school are back with a vengeance and not to be messed with.
They have the power now and are still ticked off that you got the pretty girl in high school and they didn’t.
Related Post:
6 Things You Can Do to Avoid Going to Jail for Failure to Remit State Sales Tax
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1 6 Things You Can Do To Avoid Going to Jail for Failure to Remit State Sales Taxes // Apr 23, 2009 at 7:15 am
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